NEOPIN: Exploring New Possibilities of Combining DeFi and CeFi

NEOPIN is a "licensed DeFi protocol" under the Korean game company Neowiz. It aims to build a bridge between traditional finance and DeFi protocols within a compliant framework, while also incorporating the advantages of CeFi and DeFi.

NEOPIN has been selected for the innovation program of the Abu Dhabi Investment Office and is working with local government agencies to develop a DeFi regulatory framework. As one of the few DeFi service providers to receive regulatory approval, NEOPIN proactively embraces regulation to ensure long-term development is not restricted.

NEOPIN is the only DeFi protocol that simultaneously supports the Klaytn and Finschia networks, making it a clear beneficiary of the Klaytn and Finschia merger event, and it may become a DeFi example of the "blockchain merger" concept in the future.

NEOPIN offers RWA-based DeFi products to enter the RWA market in a compliant manner, aiming to share in the explosive growth benefits of the RWA market.

Through comparative analysis valuation, it is expected that the price of $NPT tokens will reach between 3.10 and 8.39 USD by the end of the first quarter of 2025, indicating significant upside potential compared to the current price.

Backed by gaming giants and compliant DeFi operations, NEOPIN is expected to gain more community trust in the upcoming wave of blockchain mergers, benefiting from the merger of two major public chains. As a highly inclusive DeFi protocol, NEOPIN's efforts to bring real-world assets on-chain are more likely to be recognized by users, providing an opportunity to win the loyalty of a wide range of web2 and web3 users.

The Main Advantages of NEOPIN

1. Benefit from blockchain merger

On February 15 this year, the Klaytn public chain and the Finschia public chain agreed to merge to build Asia's largest Web3 ecosystem, Project Dragon, covering over 250 million Asian wallet users.

Klaytn is developed by Ground X, a subsidiary of the South Korean internet giant Kakao. Kakao Talk is the most popular instant messaging tool in South Korea. Finschia is developed by Line Tech Plus, a subsidiary of the Japanese internet giant Line. Line Messenger is the most popular instant messaging tool in Japan.

The merger of the public chains under "WeChat" from South Korea and Japan may become a landmark event in the blockchain industry, triggering a future "blockchain merger" craze.

Blockchain "mergers" are more beneficial for industry development than "forks." Mergers mean the consolidation of community will and the establishment of a higher level of consensus. From a traditional financial perspective, "mergers" are equivalent to "mergers and acquisitions," which are important means for companies to grow and strengthen.

NEOPIN is the only DeFi protocol and governance committee member that supports both the Klaytn and Finschia networks. To assist with this historic blockchain merger, NEOPIN has made extensive preparations, such as launching the first cross-chain bridge between Klaytn and Finschia, supporting bidirectional cross-chain.

In this complex merger project, NEOPIN has attracted attention as the only DeFi protocol that supports both networks simultaneously, with each new feature potentially serving as an important example for DeFi protocols to respond to blockchain mergers.

If NEOPIN performs well in this merger, it will have the opportunity to play a greater role as the first practitioner in more blockchain mergers in the future.

2. Actively Embrace Regulation

In recent years, regulatory agencies in various countries have increased their oversight of web3 projects. It has become a trend for more and more projects to be included in regulatory frameworks. Issues such as lack of transparency, vulnerability to hacking, and compliance risks have restricted the long-term development of Decentralized Finance projects.

NEOPIN, as one of the first protocols to propose "permissioned DeFi," chooses to actively embrace regulation, demonstrating courage and foresight.

The project collaborates with regulatory authorities in its early stages, which is beneficial for building a cryptocurrency usage platform that meets regulatory requirements while fully leveraging the advantages of Decentralized Finance and CeFi. NEOPIN is working with the UAE government to develop a DeFi regulatory framework and promote services based on this framework globally, positioning itself in a competitive advantage. Later entrants may have to accept the same regulatory framework, making it difficult to pose a threat to pioneers like NEOPIN.

Before using the NEOPIN service, users must undergo KYC verification, which helps prevent illegal funds from flowing into Decentralized Finance protocols, avoiding unnecessary trouble for users.

The goal of Web3 is not to create a lawless land, but to drive innovation in traditional fields in new ways. Projects like DeFi protocols, which involve large flows of funds and high risks, must be integrated into the existing regulatory framework to develop healthily in the long term.

We believe that in the early stages of a project, actively accepting regulation and operating compliantly is more conducive to survival when regulations become stricter in the future. A good reputation can also help attract more new web3 users, and attracting a large number of new users who have not yet been exposed to web3 is a necessary condition for the entire industry to grow.

3. Entering the RWA market

On March 28 this year, NEOPIN officially announced the launch of RWA-based Decentralized Finance products, entering the RWA market.

RWA( Real World Asset ) market is an important link between the on-chain world and the off-chain world. In recent years, the TVL in the RWA sector has achieved several times growth annually, making it a golden track of highly certain growth.

Top global institutions like BCG predict that the RWA market will develop into a massive market worth tens of trillions or even over a hundred trillion dollars in the coming years. Similarly, ONDO Finance, which is compliant in conducting RWA business, has seen its governance token $ONDO grow over 300% in the past three months.

The NEOPIN BDLP launched by NEOPIN is a multi-yield liquidity mining protocol based on RWA. Users can deposit DAI, USDT, or USDC, and NEOPIN uses sDAI and USDe to provide users with generous returns. Currently, the annualized yield ranges from 13% to 30%.

To provide each user with the best asset management ratio, NEOPIN has also developed a proprietary AI algorithm that determines the allocation ratios between different assets based on user preferences and on-chain data, efficiently investing in complex Decentralized Finance derivatives.

NEOPIN simplifies the investment process, allowing users to easily explore and invest in various Decentralized Finance without having to switch between multiple protocols, thereby lowering the barrier to entry.

In the future, compliant RWA products will become a bridge between the web2 world and the web3 world. Only compliant RWA platforms can allow more web3 beginners to access high-quality real-world assets. Currently, pioneers in the RWA field have the opportunity to establish a first-mover advantage from both the product side and the user side, and win in future competition.

Valuation Analysis

By conducting a comparable valuation analysis with four types of projects: DEX, Staking, Bridge, and RWA, we draw the following conclusions:

It is expected that by the end of 2024, the market value of NEOPIN will be in the range of $268 million to $727 million, and the price range of $NPT will be between $3.10 and $8.39.

Conclusion

The main highlights of NEOPIN include:

• The project is backed by the South Korean gaming giant Neowiz, with a strong and sizable team background, indicating the project's active willingness to build.
• NEOPIN is the first DeFi protocol to benefit from the concept of "blockchain mergers". If it can play an important role in the merger between Klaytn and Finschia, it is expected to gain more community trust in the future wave of blockchain mergers.
• NEOPIN actively embraces regulation and is one of the first protocols to propose "permissioned DeFi". As an inclusive DeFi protocol built within a compliance framework, the project's long-term development prospects are optimistic.
• NEOPIN enters the RWA field under a compliant framework, and its efforts to bring real-world assets on-chain are more likely to be recognized by web2 and web3 users, promising to become an important bridge between the two worlds.
• Through comparative analysis valuation, it is expected that the price of $NPT tokens will reach between $3.10 and $8.39 by the end of 2024, showing significant upside potential compared to the current price.

Therefore, we can fully look forward to:

As a web3 user utilizing multiple public chains, if in the future wave of blockchain mergers, it is possible to seamlessly connect and smoothly transition between multiple public chains using the same Decentralized Finance protocol; or as a former web2 user, if when trying to use web3 protocols to purchase various RWA assets, it is found that one can use the webpage or APP of the same company ( without worrying about legal compliance issues ). Then one can imagine how high the user loyalty to this protocol will be.